Danske closes third FoF on €600m

Danish private equity firm Danske Private Equity has raised €600m for its third fund of funds and has already made allocations to four European partnerships.

Danske Private Equity, the Danish fund of funds manager, has held a final close of its Dankse Private Equity Partners III fund at €600 million ($765 million), beating its original target by €50 million.
Danske Private Equity held a first close of its third fund of funds last November with €311 million of commitments. At that time, it also announced a final target of €550 million, the same size as its two previous funds of funds.
Danske Private Equity I and II raised €550 million in 2001 and 2004 respectively. Dan Kjerulf, a partner at Danske Private Equity, said that both funds are now fully invested, with 15 partnership commitments each.
Danske Private Equity Partners III will follow a similar strategy to its predecessors, investing roughly 50:50 in Western European and North American middle market buyout funds, as well as some venture funds.
So far, fund III has made allocations to Clarus Life Science I, a US life sciences fund which raised $500 million last December; Alpha V, a Franco-German mid-cap buyout fund which closed on €750 million in February; Nordic buyout firm Altor Equity Partners’ second fund, which closed on €1.15 billion, also in February; and Spanish private equity investor Inversiones Ibersuizas’ €300 million vehicle Ibersuizas II.
Companies within the Danske Bank Group, the parent company of Danske Private Equity, committed approximately 20 percent of Fund III’s capital, with the remainder coming from around 15 third party clients in the Nordic countries.
Kjerulf said that the majority of investors in the previous funds re-allocated to fund III: “The two previous funds had a significant majority of Danish institutions and that is the case with Fund III. In addition to existing investors, we also got client interest from new market sectors, such as smaller Danish and Nordic pension funds and corporate treasuries.”
Kjerulf said that no placement agent was used for the fundraising but “we had people to introduce us in various markets”.
Founded in January 2000, Danske Private Equity currently has over €1.7 billion under management and nine investment professionals operating out of its Copenhagen office.